Correlation Between Mesirow Financial and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial and Oklahoma Municipal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mesirow Financial and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesirow Financial Small and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Mesirow Financial and Oklahoma Municipal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mesirow Financial with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and Oklahoma Municipal.
Diversification Opportunities for Mesirow Financial and Oklahoma Municipal
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mesirow and Oklahoma is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Mesirow Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mesirow Financial Small are associated (or correlated) with Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Mesirow Financial and Oklahoma Municipal
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 3.71 times more return on investment than Oklahoma Municipal. However, Mesirow Financial is 3.71 times more volatile than Oklahoma Municipal Fund. It trades about 0.13 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.03 per unit of risk. If you would invest 1,325 in Mesirow Financial Small on September 3, 2024 and sell it today you would earn a total of 118.00 from holding Mesirow Financial Small or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Mesirow Financial Small |
| Oklahoma Municipal |
Mesirow Financial and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and Oklahoma Municipal
The main advantage of trading using opposite Mesirow Financial and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial position performs unexpectedly, Oklahoma Municipal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Mesirow Financial vs. Biotechnology Ultrasector Profund | Mesirow Financial vs. Janus Global Technology | Mesirow Financial vs. Technology Ultrasector Profund | Mesirow Financial vs. Pgim Jennison Technology |
| Oklahoma Municipal vs. Limited Term Tax | Oklahoma Municipal vs. Calvert Short Duration | Oklahoma Municipal vs. Federated Short Term Income | Oklahoma Municipal vs. Jhancock Short Duration |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |